IBM (IBM) Offering Possible 40.45% Return Over the Next 7 Calendar Days

IBM's most recent trend suggests a bullish bias. One trading opportunity on IBM is a Bull Put Spread using a strike $135.00 short put and a strike $130.00 long put offers a potential 40.45% return on risk over the next 7 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $135.00 by expiration. The full premium credit of $1.44 would be kept by the premium seller. The risk of $3.56 would be incurred if the stock dropped below the $130.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for IBM is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for IBM is bullish.

The RSI indicator is above 80 which suggests that the stock is in overbought territory.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


The $63 Billion Balance in Apple’s Repurchase Program
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Key Apple Updates: iPhone Pricing, Service Business, Outlook(Continued from Prior Part)$37.3 billion spent as of end of 2018Last year Apple (AAPL) added $100 billion to its repurchase program, placing the company on a path to shrink its outstanding

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Boeing Hits an All-Time High, Becomes the Best Dow Performer YTDBoeing is at an all-time high Shares of the Boeing Company (BA) hit an all-time high of $410.75 on February 5 before closing slightly lower at $410.18. The recent optimism surrounding

IBM Poised to Grind Higher, New Risk Level Suggested
Wed, 06 Feb 2019 15:46:00 +0000
International Business Machines was mentioned by Jim Cramer in his Mad Money program Tuesday night. “They (value investors) want bold acquisitions to spur more growth. That's exactly what IBM did with its $34 billion purchase of Red Hat”, Cramer said, and after initially being panned, the deal is already beginning to show promise.

IBM develops new technology to help prevent power outages
Wed, 06 Feb 2019 14:38:34 +0000
IBM Corp. has developed technology to predict and monitor when and where trees and vegetation threaten power lines which could help improve power supply operations and reduce outages, it said on Wednesday. Vegetation can cause disruption for energy companies, often growing over or obstructing power transmission lines.

Apple Stock vs. Microsoft Stock: Investors Are Asking the Wrong Question
Wed, 06 Feb 2019 14:10:10 +0000
The Microsoft (NASDAQ:MSFT) versus Apple (NASDAQ:AAPL) is really a little misguided. If I could only own two tech companies, Apple stock and Microsoft stock would be a pretty potent combination.

Over the past five years, a $10,000 investment in both stocks would have netted you $56,070, or an annualized total return of 22.9%, 876 basis points higher than the S&P 500.

I'm not sure why investors feel the need to pick one over the other. It seems to me that if you can afford to own both stocks, you absolutely should, and that includes Warren Buffett.

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### A New Microsoft

Like the ads that said, "This isn't your father's Oldsmobile," Microsoft isn't the same company it was before CEO Satya Nadella took the reins in February 2014. Ian Sherr and Connie Guglielmo wrote a great article in 2018 about the transformation. You should read it. It says, in part:

"One of the things that happens when you're super successful is you sort of sometimes lose touch with what made you successful in the first place," Nadella told the authors while discussing the impetus for Microsoft's annual three-day hackathon. "I wanted to go back to the very genesis of this company: What is that sense of purpose and drive that made us successful? What was the culture that may have been there in the very beginning or in the times when we were able to achieve that success? How do we really capture it?"


It's this kind of thinking that generates ads like the one that appeared in the Super Bowl, the Xbox ad featuring its Adaptive Controller.

I don't have kids, but you don't need to relish the pure joy of the message, "When everybody plays, we all win."

To me, this exemplifies how far Nadella has brought Microsoft. It's an emotionally mature ad from an emotionally intelligent company which is excellent news if you own Microsoft stock.

Of course, it makes sense that Apple didn't run an ad given the Microsoft Surface is the official tablet of the NFL and the official laptop of Super Bowl LIII. Why try to compete?

No longer is Microsoft a boring software company. It's a tech company focused on providing solutions to real problems. There's a big difference.

### I Wasn't a Fan

I must admit that I wasn't originally a fan of Nadella's. Here's what I wrote in July 2017:

"Microsoft shareholders have done well since Nadella took over in February 2014. However, MSFT could have done equally as well paying Nadella and the rest of the management team a fraction of their annual compensation.

"Is Satya Nadella overpaid? You better believe it."

Here's what I said about Microsoft in November:

"Although I've been critical about Nadella's pay in the past , there's no way you can deny that the changes he's made at Microsoft have returned it to growth mode after several years of stagnating revenues.

"A CEO is paid to improve the results of his or her company, and Nadella's done just that."

It's not that I condone excessive CEO compensation, but at least he's transformed Microsoft into a company that isn't sleepwalking through its business day. Not many CEOs have the power to do this.

### Tim Cook Is Great for Apple Stock

For me, Tim Cook is an excellent CEO because of the things he hasn't done, rather than the stuff he has; a reality that's reflected in the gains for Apple stock.

Analysts continue to push for him to open the Apple cash vault to make a big acquisition such as buying Netflix (NASDAQ:NFLX) to solidify its streaming business. Of course, Netflix would cost Tim Cook close to $200 billion, not a small sum, even for Apple.

It's possible that Cook might succumb to the pleas, but I doubt it.

I see Apple fully committed to continuing to develop products and services internally with bolt-on acquisitions like Shazam to fill in the gaps where necessary.

Not being born with a silver spoon certainly helps minimize the need to make splashy acquisitions like the $34 billion purchase of Red Hat (NYSE:RHT) by IBM (NYSE:IBM).

Apple's got plenty going on in Cupertino to keep it busy without having to spend significant hours integrating a massive acquisition. It might not be a player in streaming right now, but I have no doubt it will be five years from now.

### The Bottom Line on Apple Stock

If you're going to buy Apple stock, I believe you also should buy Microsoft, and vice versa.

The two companies might have been enemies at one time. Today, I think they're respectful competitors.

The right question for investors to ask: Why It Makes Sense to Own Both Stocks?

As of this writing Will Ashworth did not hold a position in any of the aforementioned securities.

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